This contract tip is about how poorly-drafted contracts can contribute to problems in a contract's performance. But the converse isn't true. You can't stop disagreements and conflicts from happening just because the contract is well done.
Preventing contract disputes often comes down to these three things:
1. Clear communication - Communication throughout the relationship goes a long way toward preventing problems. That communication starts during negotiations and should continue through the term. Not having open channels to discuss issues leads to misunderstandings, which leads to frustration and hostility, leading to disputes.
2. Operational excellence - Performance matters. I've seen over and over how poor execution causes problems. To prevent issues as a vendor or customer, focus on operational excellence, especially with your product, engineering, and quality control teams.
3. Do the right thing - If you screw up, fix it. If your vendors have been great and miss one deadline, cut them some slack. If you cause your customer a problem, make it right. When you are a good partner to your contract counterparties, they are more likely to be good partners to you.
What do you think is most important requirement for preventing operational disputes in your contract relationships? What else would you add to the list?
